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India : The new superpower for Global Shopping?
April 16, 2018

With its large population and expanding economy, India is the fastest growing Global Shoppers country in Southeast Asia. According to Global Blue, spending by Indian Global Shoppers has increased by 23% in 2017. Several factors can explain the luxury goods consumption from India around the world:
- The increase in income is starting to benefit broader groups of the population and not just those with education and elites. Due to rising spending by the middle classes and the well-off working class ,the Boston Consulting Group expects India to be the third largest consumer market in the world by 2025. However, the list of the richest continues to grow.
- Increasing importance of luxury brands: Indian consumers are starting to show a strong preference for international luxury fashion brands. Their exposure to these brands is reinforced through Internet consumption (which should reach 500 million by June 2018) and due to the arrival of the presence in the country of several major brands in luxury goods (including Ermenegildo Zegna and Longchamp).
- Growing and motivated young market: While Millennials are expected to account for 40% of the global luxury goods market by 2025, the rising tide of young, style-conscious, brand-conscious consumers in India may propel the country’s spending to new heights. With 440 million “Millennials” and 390 million representatives of the Generation Z, they outnumber even young Chinese.
- Digital influence on purchasing decisions is increasing in India; today, about 70% of those with Internet access go online to make well-informed purchasing decisions.
India is currently one of the most sought-after markets by Boeing and Airbus because of the desire of Indian companies to meet a growing demand for both domestic and international flights. In addition, passenger traffic on domestic routes in India increased by 17.9% year-on-year in January, the 41st consecutive month of double-digit growth (Iata). The airline Jet Airways adds this summer 144 domestic flights a week, some of which on new routes to emerging cities especially in north-east India.
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